The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-06-27
THE FIDELITY BANK.
Approximate Assets and Liabilities-A Deficit
of Nearly $4O00,000.


Sufficient data at hand by which. with este
mates of resources and liabilities, an approxirna-
ton of what depositors may expect be-
reached. 1t is rather small. it is true, but many
debtor who has failed in business has comproS
missed for less percentage OF his liabilities. The
outcome from the wreck may be more than the
figures given win produce, which will be SO much
the better. Depositors. however, hardly
look to any other item than that of bills receiv-
able for an increased dividend. This item
amounts to So, 600, 900: that is, loans and dis
counts or the sums borrowed for which the bank
holds notes of individuals and corporations, APP
An analysis OF resources of the bank
will begin W. the bills rec eivable.
OF the eo g. go ,6Oo. GOO -d il 900 notes on hand
L. Harper, Swift iron and steel works and
the amount of s. or $500. 900, call the
whole 81, 200, 900, deduct from So, 600. 600
will leave ST. ,40O.G IN consequence of the lib
erality of the ban. u loaning upon doubtful
curity, a fair estimate of what this 81. 400. 600
will produce is 80 per cent, 800, 600. From
the latest PIT blshed statement of the bank there
appears an item of ''other stocks and bonds"
worth $40, 900. and due from banks throughout
the country 5000, 900, which may be considered
at their full value.
The Treasury Department holds $40, 900 Of
be realized $102, 900 from the premium, say 80
per cent. The department. also holds 800. 600
of 4per cents to secure circulation of S9O.eO0 is
sued to the bank.
All the government wants is 800 900 in green
backs with which to redeem the circulation. ard
il the $780, 900 of per cents sold at 1880 600
there will remain $40. 900 as asset. The pre-
MUM the 500, 900 of 'sother stocks and bonds
may he estimated at 49, 100 and tho interest on
the $40, 900 of per cent bonds held by the
department, due July l, is s4.400. There is also
a 5 per cent redemption paid the 800 900 OF
circulation, amounting to 81, 800 which viii be
returned when the circulation is taken up.
The double liability OF stockholders will now
be considered. On the assumption that the
issue of the now stock was illegal, because un-
authorized the capital stock remains at 81, 00O,-
O00 Mr. Harper owned and controlled so much
of it that it is safe that only $500 900 of it
is in the hands of other holders. and only about
so per cent. can be collected, which would pro-
duce $3.50, 900. Now add the cash on hand
nate that there that muchand the total
resources amount to S., 499 000
The column of liabilities will begin with $780,
900 individual deposits, followed by So. 600, 900
stock should have realized 81, $50, 600, but it s
known that the whole sum is ST., loo, 900, the diff
ference not having been paid up AS the bank
holds $500, 900 receipts to secure notes assets.
total assets leaves still liability Of $3.50 900.
providing the issue of new stock was illegal Mr..
Wiltshire took $500. 900 of New York drafts to
Chicago. but of this amount the payment OF
$500 900 was stopped and 800 900 was paid by
the Chemical National Bank of New York. so it
leaves $500, 600 another liability. Mr. Harper
issued 500. 600 of certificates of deposit to him.
self and likely hypothecated them with the cor
of the liabilities from these figures amounts to
So. 400. 900. The liabilities are therefNe shown
to exceed the resources SO, 90l.O00. Now. little
sum in long division will show that the Deposit
will get 38 4 10 per cent. on the dollar
The following table shows all the resour ceS
and liabilities in detail: